What’s the next hyper-growth industry? It might be autonomous aerial vehicles (AEVs). To get ahead of the crowd, consider putting EHang (NASDAQ:EH) stock on your watch list.

We’re giving EH stock an “A” grade, not only for EHang’s progress in the flying car market, but because the company recently invested in next-generation battery technology.

EHang is based in China, but don’t let that dissuade you from conducting your due diligence on this fascinating startup company. We encourage you to expand your horizons as a diversified investor. So, let’s prepare for flight as we delve into the basics of AEV specialist EHang.

Consider the True Value of EH Stock

Sometimes, when an industry is still in its early stages, it makes little sense to obsess over traditional valuation metrics. While it’s true that EHang isn’t currently profitable, that’s not unusual for a “frontier” business in a burgeoning niche market.

Consider assigning a value to EHang based on the company’s potential future growth. The Civil Aviation Administration of China has already approved EHang’s Unmanned Aircraft Cloud System for test flights.

EHang is cleared for takeoff while most investors aren’t even aware of this company yet.

Besides, EHang isn’t just in the testing stage. In fact, the company just delivered five EH216-S AEV units to a new customer, Shenzhen Boling Holding Group Co., Ltd. Shenzhen Boling could purchase 95 additional EH216-S units.

EHang Offers Exposure to Battery Technology

EH stock could easily be undervalued based on the growth potential of EHang and the AEV manufacturing industry. Yet, there’s more to the company than that. EHang is also involved in the market for next-generation battery technology.

You may already know that electric cars use solid-state lithium-metal batteries. Yet, you might not have considered their potential use in flying vehicles, such as the ones that EHang is developing and commercializing.

As a forward-thinking business, EHang is ahead of the curve as the company recently announced a strategic investment in China-based Shenzhen Inx Technology.

Per the agreement, Shenzhen Inx will cooperate with EHang to develop solid-state lithium metal batteries for EHang’s flying vehicles.

It’s true that EHang isn’t the only AEV manufacturer on the market. Still, this investment in AEV battery technology makes sense and could give EHang a notable competitive advantage in the long run.

EH Stock Might Not Stay Undervalued

EHang is making progress in the AEV industry with clearance for test flights in China and a new customer. Plus, EHang is thinking ahead with a savvy investment in solid-state lithium battery technology.

Before you know it, EHang might be a household name or at least a topic of conversation on Wall Street.

Therefore, regardless of traditional valuation metrics, EH stock looks undervalued and deserves a confident “A” grade.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.